The squeeze on household incomes that has turned into a nightmare stranglehold for millions of working people should herald a government economic U-turn.

We are in a desperate situation where millions of working people and their families are juggling rising food and energy bills when household incomes for the majority of people have not kept pace in recent years. Where families lead in suffering, shops and businesses will follow.

With further energy price rises due in the next couple of months, a bleak mid-winter can expected by millions whose lives have been made a misery by ministers unable to connect with the lives of ordinary people.

George Osborne’s misguided and ill-conceived austerity programme is pushing the people of this country to breaking point. What is needed is action now to put money into the pockets of the millions of working people who are the backbone of this country. Instead, we get £40,000 tax-breaks for the super rich.

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This is a worrying increase in the inflation rate. But instead of easing the squeeze, the Government is adding to the cost of living crisis for people on low and middle incomes.

Conservative and Lib Dem MPs last night voted against Labour’s call for January’s 3p fuel duty rise to be postponed. And in the coming months millions of families and pensioners on low and middle incomes face rising energy bills, cuts to child benefit and the granny tax, while 8,000 millionaires get a tax cut.

This out of touch government has got its priorities all wrong. It’s time they took urgent action to help people on middle and low incomes and kick-start our flatlining economy.

It is disappointing that inflation increased in October. Inflation remains much lower than its peak of 5.2% last September. The Government has taken action to help people with the cost of living, including freezing fuel duty and council tax and taking two million people out of income tax altogether.